Porter's 5 Forces on Airline Industry
The budget airline industry in Singapore presents an interesting situation for analysis. It has 3 main local players plus a foreign player, namely Valueair, Tiger Airways, Jetstar Asia Airway and Airasia but Jetstar Asia Airways has effectively merged with Valueair. There are also possibilities of more foreign budget airlines operating in Singapore, and big airlines may also slash their prices to compete with the budget airlines. The higher fuel price, terrorist threat and restrictive govt policies regarding open air travel right are some of the challenges in this industry. Use Porter's five forces model to critically analyse the budget airline industry. (100 marks)
Introduction of airlines
AirAsia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. Being the first of its kind in Asia, the budget airlines have managed to mark its mighty presence' in the Asian region the way Southwest Airlines has done in the US market. Established on 12 December 2001, AirAsia has been such a big phenomenon in the Asian airline industry. By using a simple yet strong slogan "Now Everyone Can Fly", AirAsia has successfully positioned itself as Asia's leading "low fare no frills" airline.
Jetstar Asia Airways is the Singapore's new low fares airline for Australia and the Asia Pacific region. Established in 2004, it seeks out to provide consistent low fares to Australian, New Zealand and Asian leisure travellers. It's strong association with Qantas ensures the highest standards of operational excellence, whilst delivering real savings to customers.
Valuair, being the sister company of Jetstar Asia, provides value-for-money passenger and cargo flight services out of Singapore. Valuair begun operations in May 2004 and currently flies to Bangkok, Jakarta and Surabaya on its brand new A320's.
Tiger Airways took to the air on September 15,
Introduction of airlines
AirAsia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. Being the first of its kind in Asia, the budget airlines have managed to mark its mighty presence' in the Asian region the way Southwest Airlines has done in the US market. Established on 12 December 2001, AirAsia has been such a big phenomenon in the Asian airline industry. By using a simple yet strong slogan "Now Everyone Can Fly", AirAsia has successfully positioned itself as Asia's leading "low fare no frills" airline.
Jetstar Asia Airways is the Singapore's new low fares airline for Australia and the Asia Pacific region. Established in 2004, it seeks out to provide consistent low fares to Australian, New Zealand and Asian leisure travellers. It's strong association with Qantas ensures the highest standards of operational excellence, whilst delivering real savings to customers.
Valuair, being the sister company of Jetstar Asia, provides value-for-money passenger and cargo flight services out of Singapore. Valuair begun operations in May 2004 and currently flies to Bangkok, Jakarta and Surabaya on its brand new A320's.
Tiger Airways took to the air on September 15,